Attorney General (AG) of Texas Ken Paxton announced that he sued Netflix for spying on Texans, including children, and collecting users’ data without their knowledge or consent.
The suit alleges Netflix secretly tracks and monetizes detailed viewing behavior of users, including children, while misleading users about its data practices. The case could reshape how Netflix collects data, targets ads, and designs “addictive” features, especially for minors.
According to the complaint, Netflix allegedly ran what the AG’s office calls a “surveillance program,” turning every click, pause, and binge session into data that could be sold to advertisers and data brokers.
Netflix firmly denies the accusations, calling the lawsuit “inaccurate” and claiming it complies with privacy laws wherever it operates. Spokesperson Jamil Walker said:
“The suit lacks merit and is based on inaccurate and distorted information.”
But regardless of how this specific case plays out, the lawsuit raises a bigger question for all subscribers: Just how much does your streaming service really know about you, and what does it do with that information?
The Texas complaint paints a picture of Netflix as a data company first and a streaming service second. Paxton’s office even describes Netflix as:
“A logging company that records and monetizes billions of behavioral events—and occasionally streams movies.”
The complaint also references a 2024 ruling by the Dutch Data Protection Authority, which said Netflix does not disclose the true scale or granularity of this data collection. The lawsuit claims Netflix did not just use this data internally for recommendations but also sold it to commercial data brokers and ad tech companies, generating “billions of dollars” annually.
The AG wants to stop the unlawful collection and disclosure of user data, require Netflix to disable autoplay by default on kid’s profiles, and impose other injunctive relief and civil penalties.
For customers, the main consequences could include potential changes to data collection, targeted advertising, autoplay defaults, and clearer consent and privacy controls. For subscribers on Netflix’s ad‑supported plans, this could slightly change how “personal” ads feel, at least in jurisdictions where regulators clamp down.
Plus, the lawsuit serves as a reminder that streaming habits may be far more trackable than users assumed. Even if Netflix ultimately wins or settles without admitting wrongdoing, the lawsuit puts a spotlight on what the company collects and why.
Netflix privacy and account settings
It will probably take a while before this lawsuit leads to any changes. But there are a few things you can do to protect your privacy:
- Netflix lets users view and remove entries from their watch history per profile, which can reduce how much historical behavior feeds into recommendations.
- Where available, turn off non‑essential marketing emails or in‑app promotions that rely on behavioral profiling.
- Use the parental controls Netflix offers you and turn off autoplay previews.
Basically, treat your Netflix account like any other online account: Review every profile, remove old ones, and take five minutes to walk through the privacy- and playback‑related options.
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